A young AI startup named Perplexity is suddenly at the center of big tech’s attention—and that’s saying something when the companies watching are Meta and Apple.

According to reports from Bloomberg and The Information, Meta held acquisition talks with Perplexity in late April or early May. While no deal was reached, the discussions signal just how serious Meta is about staying competitive in the AI race. Apple, too, has reportedly had internal conversations about acquiring the company, though those talks are said to be early and exploratory.

Neither Meta nor Apple offered public comments, and Perplexity’s head of communications, Jesse Dwyer, told CNN the company has “no knowledge of any current or future M&A discussions.”

So, what exactly is Perplexity—and why are tech giants circling?

What is Perplexity?

Founded in 2022, Perplexity is a new kind of search engine that uses artificial intelligence to scan the web and serve up clean, summarized answers—alongside clickable source links for transparency. Think of it like Google Search crossed with a chatbot, but more focused on accuracy and explainability.

Perplexity offers two modes:

• Quick Search for fast answers
• Pro Search for deeper research (limited to three uses per day on the free plan)

Like ChatGPT and other AI tools, Perplexity isn’t just about answering questions. Users can also upload files, generate images, plan trips, and curate content based on interests. Many of these more advanced features are part of a $20/month premium plan, which also unlocks unlimited pro searches, more AI models, and enhanced project tools.

The company is also developing its own web browser, Comet, which hints at broader ambitions beyond search.

Why Are Meta and Apple Interested?

Both Meta and Apple are playing catch-up in the AI space—and Perplexity could help close the gap.

Apple’s AI Catch-Up

At its June developer conference, Apple unveiled AI-powered features like smarter emoji and live language translation. But its flagship voice assistant, Siri, still hasn’t been fully revamped despite an announcement more than a year ago.

Behind the scenes, Apple is also weighing alternatives to Google, which currently pays billions to remain the default search engine in Safari. That deal is under fire in an antitrust case brought by the Justice Department—raising the stakes for Apple to find or build its own search solution. Acquiring Perplexity could offer a strong foundation.

Apple already partners with OpenAI and Google to enhance iPhone features, but as analyst Ben Bajarin put it to CNN, “Apple needs to be relevant here. The fact that they don’t have a lot to show for their efforts is what gives most people concern.”

Meta’s AI Talent Hunt

Meta has been aggressive in its AI push, investing heavily and offering eye-popping pay packages—reportedly up to $100 million—to lure top talent. CEO Mark Zuckerberg sees AI as central to Meta’s future, across products like Instagram, WhatsApp, and its line of Ray-Ban smart glasses.

In addition to courting Perplexity, Meta recently invested in Scale AI, a data-labeling startup now valued at over $29 billion, and even brought on its founder Alexandr Wang.

While Meta’s open-source Llama models are widely used by developers, the company has faced setbacks too. It delayed the release of its next-gen Llama model, and its new standalone AI app raised privacy concerns after some “private” user queries were found to be public.

But There’s a Catch: Content Controversies

Perplexity’s rise hasn’t been without drama. The BBC recently threatened legal action, accusing the AI tool of scraping its content without permission. Media giants like Dow Jones and the New York Post have also sued the startup, alleging copyright infringement and traffic theft.

This issue—how AI models use and credit content—remains one of the biggest unresolved debates in the AI world, and one that could shape how Perplexity grows, partners, or gets acquired.

The Bottom Line

Whether or not Meta or Apple ultimately buys Perplexity, their interest alone speaks volumes. As AI continues to redefine how we search, learn, and communicate, companies that can’t keep up risk being left behind.

And with search being a key battleground, startups like Perplexity may find themselves in high demand—either as partners, tools, or billion-dollar acquisitions.

Source: CNN – What is Perplexity, the AI startup said to be catching Meta and Apple’s attention

The post Why AI Startup Perplexity Has Apple and Meta on Alert appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Apple is reportedly exploring a major shift in how it handles search on its Safari web browser, potentially bringing AI-powered search engines into the mix. This move could pose a significant challenge to Google’s longstanding dominance in the search market.

According to Bloomberg News, Apple executive Eddy Cue testified during the U.S. Justice Department’s antitrust case against Alphabet that Safari search traffic recently dropped for the first time. He attributed this decline to more users turning to AI-powered search engines, signaling a potential turning point for traditional search methods.

Currently, Google holds the default search engine position on Safari—a highly sought-after spot that comes with a hefty price tag. It’s estimated that Google pays Apple around \$20 billion annually for this privilege, which represents about 36% of Google’s search advertising revenue through Safari. However, if Apple shifts its focus to AI-powered alternatives, it could significantly impact Google’s bottom line.

This news comes at a time when Google is already facing increased competition from AI-focused startups like OpenAI and Perplexity. Apple has partnered with OpenAI to integrate ChatGPT into Siri, and Google is scrambling to secure a deal with Apple to embed its Gemini AI technology into the latest Apple devices.

Apple’s potential move could further shake up Google’s dominance, with some analysts predicting serious consequences. D.A. Davidson analyst Gil Luria warned that if Apple moves away from Google as its default search engine, it could result in a massive shift in advertising budgets. Advertisers, many of whom currently rely solely on Google’s search advertising platform, might divert their ad dollars to other viable search alternatives.

While Cue confirmed that Apple plans to include AI-driven search engines, such as OpenAI and Perplexity, as options in Safari, he emphasized that they likely won’t be the default search engines—at least not initially. The introduction of AI search engines could provide users with more choices, potentially changing the landscape of online search.

Google, which has long held an almost monopolistic share of the search market (around 90%), faces an uncertain future if alternatives become mainstream. As tech investors are closely watching these developments, the next steps could reshape how we search and how advertisers spend their marketing budgets.

Both Apple and Google saw their stock prices dip following the news—Alphabet shares dropped 6%, while Apple’s decreased by about 2%. Neither company, nor the Justice Department, responded to requests for comment at the time of the report.

As the AI-driven search race heats up, it’s clear that the battle for the future of search is just beginning. Stay tuned to see how this plays out.

Source: CNN – Apple looks to add AI search to Safari in potential blow for Google

The post Apple Eyes AI Search to Challenge Google’s Dominance in Safari appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

In a bold move, Perplexity AI has submitted a new proposal to TikTok’s parent company, ByteDance, offering a plan that would allow the U.S. government to own up to 50% of a newly-formed entity merging Perplexity with TikTok’s U.S. operations. This proposal, presented last week, revises a previous plan Perplexity submitted on January 18—just a day before the law banning TikTok in the U.S. took effect.

The Proposal: A Shift Toward U.S. Control

The latest plan aims to create a structure that would merge San Francisco-based Perplexity with TikTok’s U.S. business. It suggests that the U.S. government could own a significant stake in the new entity once it goes public, with an initial offering estimated at a minimum of $300 billion. However, the U.S. government’s shares would not carry voting rights, and it would not have a seat on the company’s board.

This proposal is a response to feedback from the Trump administration, according to an anonymous source familiar with the matter. Perplexity’s updated plan allows ByteDance to retain a stake in TikTok, while also meeting U.S. concerns about control over the platform’s operations.

ByteDance’s Role in the Deal

Under the proposal, ByteDance would not be required to sever all ties with TikTok, which would benefit its investors. However, the plan stipulates that ByteDance must allow “full U.S. board control.” This would provide U.S. officials with oversight, ensuring that the app’s operations comply with U.S. interests.

Notably, ByteDance would contribute TikTok’s U.S. business, excluding the proprietary algorithm that drives the app’s content recommendations. This move echoes a suggestion made by Steven Mnuchin, Treasury Secretary during Trump’s first term, who discussed the idea of diluting Chinese ownership to satisfy U.S. security concerns. Mnuchin had previously shown interest in investing in TikTok, emphasizing the need to disconnect the technology from China.

A Potential Solution to U.S. Security Concerns

This proposal is part of a broader discussion around TikTok’s ownership and national security. The U.S. government has raised alarms about the potential risks posed by ByteDance’s control over the app’s algorithm and the vast amount of data it collects from American users. While there’s been no concrete evidence that TikTok has shared data with Chinese authorities or allowed interference in its algorithm, the Biden administration has expressed ongoing concerns.

The Growing Interest in TikTok’s Future

As talks surrounding TikTok’s future intensify, several investors are showing strong interest in the platform. President Trump recently stated that a deal could materialize within 30 days. He mentioned receiving interest from “substantial people” and stressed that the U.S. would need to benefit from any deal made.

Trump also addressed rumors about Larry Ellison, CEO of Oracle, potentially leading a bid for TikTok’s global operations. While Trump confirmed that he had not discussed a deal with Ellison, he noted that many other parties were involved in negotiations.

TikTok’s Ban and Legal Challenges

The U.S. government had passed a bipartisan law in 2024 mandating TikTok’s ban unless it severed ties with ByteDance. Though the Supreme Court upheld the law, Trump issued an executive order to pause enforcement for 75 days, providing additional time for negotiations.

TikTok briefly shut down in the U.S. last week but resumed operations after Trump intervened. Notably, Trump had previously tried to ban TikTok during his first term, but he reversed his stance, crediting the platform for helping him connect with younger voters in the 2024 election.

Looking Ahead

As negotiations continue, the future of TikTok remains uncertain. With mounting concerns over national security and ongoing discussions about ownership restructuring, the platform’s fate could hinge on upcoming proposals like Perplexity AI’s. How ByteDance responds—and whether the U.S. government takes a more active role in overseeing the company—will be pivotal in determining TikTok’s future in the U.S.

Source

The post New Proposal Could Give U.S. Government 50% Ownership of TikTok appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

In a dramatic development on Saturday evening, TikTok was removed from both the Apple and Google app stores, just before a federal law aimed at banning the popular social media platform was set to take effect. By 10:50 p.m. Eastern Standard Time, users could no longer find TikTok available for download in the U.S., as the law mandated that TikTok’s China-based parent company, ByteDance, either sell its U.S. operation or face a complete ban.

Pop-Up Message Alerts Users of TikTok’s Temporary Shutdown

When users attempted to open the TikTok app on Saturday evening, they were greeted with a pop-up message stating that the app was no longer accessible. The message read, “A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now.”

The message further added, “We are fortunate that President Trump has indicated he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned!” Prior to this, TikTok had informed users that the service would be “temporarily unavailable” and that the company was working to restore access as soon as possible.

The Legal Battle Over TikTok’s U.S. Operations

The federal law, signed by President Joe Biden last year, required ByteDance to divest its stake in TikTok’s U.S. business or face a ban. ByteDance had nine months to find an approved buyer for the U.S. operation. However, after TikTok lost its fight in the Supreme Court on Friday, the company faced the looming consequences of the law.

Under the new statute, mobile app stores were prohibited from offering TikTok, and internet hosting services could no longer deliver the app to American users. Although both White House Press Secretary Karine Jean-Pierre and Deputy Attorney General Lisa Monaco stated that the Biden administration would leave the law’s enforcement to President-elect Donald Trump, TikTok’s legal team was vocal in its opposition.

Following the Supreme Court’s decision, TikTok issued a statement, warning that it “will be forced to go dark” unless the administration made a definitive statement to the companies providing TikTok’s U.S. services.

Trump’s Response and Possible Extension

In a Saturday interview with NBC News, President-elect Donald Trump indicated that he was considering granting TikTok a 90-day extension to continue operating in the U.S. The law permits the sitting president to extend the deadline by 90 days if a sale is in progress, though no clear buyer has emerged. ByteDance has previously stated that it has no intention of selling TikTok.

Trump hinted that this extension “will probably” be announced on Monday, providing a temporary reprieve for the platform.

Perplexity AI Proposes Deal to ByteDance

On Saturday, a new development surfaced when artificial intelligence startup Perplexity AI submitted a proposal to ByteDance. According to a person familiar with the matter, Perplexity’s offer suggested creating a new entity that would merge Perplexity with TikTok’s U.S. operations. This structure would include other investors and allow ByteDance’s current shareholders to retain a stake in TikTok. Importantly, Perplexity’s offer did not involve acquiring TikTok’s popular algorithm, which drives the platform’s content recommendations.

Other Potential Buyers Eye TikTok

TikTok has drawn interest from other investors as well. Recently, “Shark Tank” star Kevin O’Leary revealed that he and billionaire Frank McCourt had assembled a consortium of investors offering ByteDance $20 billion in cash for the U.S. business. Additionally, former U.S. Treasury Secretary Steven Mnuchin expressed interest in forming an investor group to purchase TikTok last year.

As the situation unfolds, TikTok’s fate in the U.S. remains uncertain, with President Trump’s decision on a potential extension expected in the coming days.

Source

The post TikTok Removed from U.S. App Stores Ahead of Potential Ban appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.